Their current supply chain management gives them a competitive advantage, but exclusive contracts would give them a sustainable competitive advantage. Lastly, Regal Marine should institute a system of inventory forecasting. Their current modular system seems demonstrates the importance of short lead times and a fear of obsolescence but they do not appear to engage in any serious forecasting of demand. To do so would help them gain a perspective on their needs, further reducing the need for inventories and easing their fears of obsolescence.
Because supply chain management is a source of competitive advantage for Regal Marine, their competitors can be expected to attempt to match Regal Marine's initiatives. All the advantages Regal Marine has - short lead times, modular design and supplier integration into product development - can be duplicated by competitors. In doing so, they will improve their operations and eliminate a strategic disadvantage. Moreover, the competitors can be expected to seek to exploit Regal's perceived weaknesses, for example their tying themselves to ABBA vendors.
No author. (2004). Tracking and Realizing Savings from Supply Chain Initiatives. DenaliUSA.com Retrieved May 16, 2008 http://www.denaliusa.com/pdfs/trackingsavings.pdf
Worthen, Ben. (2007). An Introduction to Supply Chain Management. CIO.com. Retrieved May 16, 2008 at http://www.cio.com/article/40940#scm_abc
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